HowardThe Boss, Bruce Springsteen, Hungry for a Bailout
October 19th 2007 14:37
Hungry for a Bailout
London clamored that it needed more cash;
So then Citbank went and set up the SIVs
It was other people’s money anyway;;
And they been doing this scam up until today;;
(Refraud
_Everybody needs a giant bailout;;
Now the SIVs all need a giant bailout;;
They lost the money, and they twist and shout;;
We all need a big, old giant, sweat-y bailout;;
Rupert Murdoch was forced to pull a twit
The Cayman Islands scam made him have a fit;;
Though usually he goes for everything Brit;;
This London bubble crap can make anyone sh@t;;
(Refraud
Everybody’s cash is in sub-prime junk;;
Everybody’s cash in sub-prime junk;;
This ’29 crash’s smelling like a skunk;;
The SIV cash is stuck in sub-prime worthless junk!
(Instrumental)
for pix: Really Long Link
http ://www. beyondthepalace. com/newjersey/empress.html
Why is Rupert Murdoch and his Wall St Journal freaking out over the dirty-do's in London? The lead article of today's Wall Street Journal, titled "How London Created a Snarl in Global Markets," (see link for original article) reports that structured investment vehicles (SIVs), that is, those collapsing funds which are the subject of frantic rescue efforts by the Treasury and major U.S. banks, were created by "a small coterie of London bankers who engendered what became a $400 billion industry.
The Journal elaborates that "Most of the few dozen SIVs, typically registered in offshore havens such as the Cayman Islands, are managed out of London." London law firms are also heavily involved in providing advice to SIV operators. The Journal attributes this London-nexus to the fact that the initial SIVs were launched out of Citigroup's London office in the late 1980s, and the Citigroup bankers which invented them now run the world's largest SIV, Gordian Knot Ltd. where they know how to do the dirty.
So should we bail out these creeps, or the Mortgaged Home owners, who got sucked into the sub-prime scam?
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Comment by S.L.
The Political Brief
Comment by Howard
Real Crash
We can do like FDR did, and create credit issuing vehicles like the RFC (Reconstruction Finance Corp). There are a lot of options. The Constitution allows the Pres. and the US Treas, with permission from the Congress, to create credit for necessary infrastructure, and that includes housing.
We have to act to prevent homeownership from dropping sharply.
The key is NOT to get sucked into backing, and bailing out all the exotic crap from London, the Cayman Islands, and other places offshore. That will kill us. It is at least $300 trillion, and the GNP is what, $10 Billion?
Comment by Howard
Real Crash